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Allegiant Travel Company (ALGT - Free Report) reported fourth-quarter 2021 earnings (excluding 59 cents from non-recurring items) of $1.18 per share, beating the Zacks Consensus Estimate of $1.13 per share. Sentiments regarding air-travel demand are bullish now (due to increased inoculation programs) compared with the year-ago quarter, when the company reported a loss of $1.12 per share.
Operating revenues of $496.9 million beat the Zacks Consensus Estimate of $475.3 million and increased more than 100% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Passenger revenues, which accounted for a bulk (91.4%) of the top line, surged more than 100% on a year-over-year basis. The upside can be attributed to improvement in air-travel demand.
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service surged 76% in the quarter under review. Capacity (measured in available seat miles or ASMs) also increased 32.9% year over year. The load factor (percentage of seats filled by passengers) widened 1890 basis points to 77.1% in the reported quarter, as traffic surge outweighed capacity expansion.
Operating cost per available seat miles (CASM), excluding fuel, increased 14.8% year over year to 7.52 cents. Average fuel cost per gallon (scheduled) surged 77.1% to $2.48 in the quarter. Total scheduled service passenger revenue per available seat miles (TRASM) rose 53.2% to 11.18 cents.
Liquidity
As of Dec 31, 2021, Allegiant Travel’s total unrestricted cash and investments totaled $1,182.8 million compared with $685.3 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,612.5 million compared with $1,441.8 million reported at the end of 2020.
Q1'22 Expectations
For first-quarter 2022, ASM (for scheduled service) is expected to increase 19-23% from first-quarter 2019 figures.
Total system ASM are also expected to rise 19-23% from first-quarter 2019 figures.
Total operating revenues are expected to move up 5-9.5% from first-quarter 2019 actuals.
Fuel cost per gallon is expected to be at $2.67.
2022 Expectations
For 2022, under Airline capex, the projection for aircraft, engines, induction costs and pre-delivery deposits is at $255-$265 million.
The view for capitalized deferred heavy maintenance is at $85-$95 million. Other airline capital expenditures are expected between $95 million and $105 million.
Interest expenses are expected in the range of $85-$95 million.
Total project spending (Sunseeker Resorts Project) for 2022 is expected to be $560-$585 million.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #5, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
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Allegiant (ALGT) Q4 Earnings Beat Estimates, Increase Y/Y
Allegiant Travel Company (ALGT - Free Report) reported fourth-quarter 2021 earnings (excluding 59 cents from non-recurring items) of $1.18 per share, beating the Zacks Consensus Estimate of $1.13 per share. Sentiments regarding air-travel demand are bullish now (due to increased inoculation programs) compared with the year-ago quarter, when the company reported a loss of $1.12 per share.
Operating revenues of $496.9 million beat the Zacks Consensus Estimate of $475.3 million and increased more than 100% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Quarter in Details
Passenger revenues, which accounted for a bulk (91.4%) of the top line, surged more than 100% on a year-over-year basis. The upside can be attributed to improvement in air-travel demand.
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service surged 76% in the quarter under review. Capacity (measured in available seat miles or ASMs) also increased 32.9% year over year. The load factor (percentage of seats filled by passengers) widened 1890 basis points to 77.1% in the reported quarter, as traffic surge outweighed capacity expansion.
Operating cost per available seat miles (CASM), excluding fuel, increased 14.8% year over year to 7.52 cents. Average fuel cost per gallon (scheduled) surged 77.1% to $2.48 in the quarter. Total scheduled service passenger revenue per available seat miles (TRASM) rose 53.2% to 11.18 cents.
Liquidity
As of Dec 31, 2021, Allegiant Travel’s total unrestricted cash and investments totaled $1,182.8 million compared with $685.3 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,612.5 million compared with $1,441.8 million reported at the end of 2020.
Q1'22 Expectations
For first-quarter 2022, ASM (for scheduled service) is expected to increase 19-23% from first-quarter 2019 figures.
Total system ASM are also expected to rise 19-23% from first-quarter 2019 figures.
Total operating revenues are expected to move up 5-9.5% from first-quarter 2019 actuals.
Fuel cost per gallon is expected to be at $2.67.
2022 Expectations
For 2022, under Airline capex, the projection for aircraft, engines, induction costs and pre-delivery deposits is at $255-$265 million.
The view for capitalized deferred heavy maintenance is at $85-$95 million.
Other airline capital expenditures are expected between $95 million and $105 million.
Interest expenses are expected in the range of $85-$95 million.
Total project spending (Sunseeker Resorts Project) for 2022 is expected to be $560-$585 million.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sectorial Snapshot
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) recently reported fourth-quarter 2021 results.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #5, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.